How do we define ‘successful’? (financially speaking?)

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This is a very strong word. ‘Successful.’ How do we define if someone is successful? A close friend responded to me via Whatsapp after she read this article: Preference means one could but chose not to Actual conversation in Whatsapp.

Her part: “I like Volvo personally but very money minded people say Volvo have no second hand value… hopefully now is better.”

My reply: “When you can afford a Volvo, stop talking about resale value. U just buy and you enjoy. Period.”

By the way, except for a few niche cars, all cars lose their value (price wise) as soon as they are out of the showroom. So, if we need to talk about resale value, then buy the cheapest car we could afford, that’s a guarantee that we lose the least amount wise. A RM140,000 car losing just RM42,000 (30%) is much more than a RM40,000 car losing 80% of its value okay… Don’t start debating about the %. It makes no money sense at all. Only if we talk about return on investment (ROI), then we look at % because not everyone has RM140,000 to invest. Some have just RM40,000. So, it’s about maximising the returns…

Anyway, just for this article, let’s define successful as having enough money to do what we wanted to do. Note though that someone thrifty will need less and someone not so thrifty will need more but the thinking behind is the same. My parents need less than RM1,000 per month because their home is fully paid for and they do not go Starbucks like most of us. Unfortunately I will need more but I am very sure some would need many times more than me.

Successful financially thus meant that we have a lot more than we need. There are definitely ways to prepare even if we are not multi-millionaires, yet.

We do not need to get ready RM50,000 for medical emergencies if we already have a medical card which we are paying a small premium every month. Start protecting what we have by investing a small amount instead of losing it all when something negative happens.

We do not need to be too stressful if we lost our job and needed 3 months to get back a similar one if we saved a bit every month for the past few years plus did not go to Starbucks weekly for a few years. (RM30 x 52 weeks x 5 years = RM7,800).

We do not need to keep paying for our car instalment if we continue to drive a car which is fully paid for and does not require much maintenance. Lots of car models could fulfill this condition easily.

We could also afford to go for vacations (not luxurious ones) after we retire if we do not need to keep paying rental simply because we believed renting is better than buying 30 years ago… (pun intended but seriously speaking)

I think these few examples also show that we financially successful too. It is not just the multi-millionaire friends we know or the top 100 billionaires list we read every year. Happy understanding.

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<Featured Image is courtesy of Stock Photos from aastock>

Article written and edited by Charles. News article summarised by Dina Batrisyia.

written on 2 April 2019

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